U.S. spot XRP exchange-traded funds posted their first net outflow, with $40.8 million exiting after a 36-day inflow streak.
The reversal coincided with broader crypto ETF weakness as Bitcoin (BTC) funds lost $486 million and Ethereum products shed $98.5 million.
Despite outflows, declining whale flows to Binance since mid-December suggest reduced sudden sell-off risk.
What Happened
21Shares XRP ETF drove outflows with $47.25 million leaving TOXR.
Canary, Bitwise, and Grayscale recorded modest inflows around $2 million each.
Cumulative inflows stand at $1.2 billion since November, with total assets at $1.53 billion.
XRP fell 6.4% to $2.10 as volume dropped over 30% to $4.14 billion.
CryptoQuant data shows whale flows to Binance declined from above 70% in late 2025 to approximately 60%.
Read also: Why BlackRock Moved $318M In Bitcoin And Ethereum To Coinbase During ETF Exodus
Why It Matters
"Decline in whale flows since mid-December, although still at relatively high levels, is a positive sign in the medium term, as it reduces the likelihood of a sudden sell-off," according to analyst ArabxChain.
The outflow represents normal profit-taking after XRP's 30% rally to $2.40 earlier this month.
Retail behavior remained stable with no panic selling despite the first institutional pullback.
January inflows slowed from December's $1.17 billion but remained positive overall at $24.4 million through January 7.
XRP remains up 13% in the past seven days.
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